08:21 AM EST, 02/04/2025 (MT Newswires) -- iA Financial ( IAFNF ) on Tuesday said it agreed to acquire Global Warranty for an undisclosed price to add its used-car warranty business.

The insurer and finance company said Global Warranty has a network of 1,500 auto dealerships and 400 repair shops where it provides insured warranty packages on vehicles. iA said the acquisition will be immediately accretive to its earnings but will lower its solvency ratio by one percentage point.

"We have been in the vehicle warranty business for over 60 years and we believe strongly that the used car market is an important segment for growth," Pierre Miron, chief growth officer for Canada, said in a release.

iA shares closed down $3.88 to $130.33 Monday on the Toronto Stock Exchange.